Rush Street Interactive Announces Fourth Quarter and Full Year 2021 Results
Rush Street Interactive (RSI) reported a 31% increase in Q4 2021 revenue to $131 million, with a full-year revenue of $488 million, up 75% from 2020. Despite a net loss of $38.1 million in Q4 and $71.1 million for the year, the company announced 2022 revenue guidance between $580 and $630 million, reflecting 24% growth. RSI's monthly active users rose 28% in Q4, while average revenue per user was $327. Operational expansions included launches in Connecticut, Arizona, New York, and Mexico, enhancing brand awareness in Canada.
- Fourth quarter revenue of $131 million, up 31% year-over-year.
- Full year 2021 revenue of $488 million, up 75% year-over-year.
- Initiating 2022 revenue guidance of $580 to $630 million, a potential increase of 24%.
- Net loss of $38.1 million in Q4 2021, though improved compared to a loss of $41.6 million in Q4 2020.
- Adjusted EBITDA loss of $31.2 million in Q4 2021, up from a loss of $1.3 million in Q4 2020.
- Fourth Quarter Revenue of
- Full Year 2021 Revenue of
- Initiating Full Year 2022 Revenue Guidance of between
Fourth Quarter 2021 Financial Highlights
-
Revenue was
$130.6 million 31% , compared to$100.0 million -
Net loss was
$38.1 million $41.6 million -
Adjusted EBITDA1 was a loss of
$31.2 million $1.3 million -
Adjusted advertising and promotions expense1 was
$64.0 million $23.1 million -
Real-Money Monthly Active Users (“MAUs”) in
the United States for the fourth quarter of 2021 were up28% year-over-year with average revenue per MAU (“ARPMAU”) of$327 -
As of
December 31, 2021 , RSI had$281 million
Full Year 2021 Financial Highlights
-
Revenue was
$488.1 million 75% , compared to$278.5 million -
Net loss was
$71.1 million $131.6 million -
Adjusted EBITDA1 was a loss of
$65.1 million $4.4 million -
Adjusted advertising and promotions expense1 was
$186.9 million $56.5 million -
MAUs in
the United States for the full year 2021 were up67% year-over-year with ARPMAU of$346 2% year-over-year.
“On the technology and product side, we continue to enhance our offerings and provide a best-in-class gaming experience to our customers. As planned, we went live with our integrated iOS sportsbook-casino app near the end of 2021. During the first half of 2022 we look forward to expanding into
Guidance
RSI is initiating revenue guidance for the full year 2022. It expects revenues for the full year ending
This range is based on certain assumptions, including that (i) only operations in live jurisdictions as of today’s date are included, (ii) all professional and college sports calendars that have been announced come to fruition, including the completion of their 2022 seasons, and (iii) RSI continues to operate in markets in which it is live today.
Recent Business Highlights
-
During the fourth quarter, launched online sportsbook in
Connecticut , along with nine of the fifteen planned retail sportsbooks, as the sportsbook partner of theConnecticut Lottery , and as one of just three online operators in the state. -
During the fourth quarter, launched online sportsbook in
Arizona via our partnership with the Arizona Rattlers, having secured one of the limited sports wagering licenses in the state. -
Following the quarter, launched online sports books in
New York andLouisiana . -
In anticipation of launch in
Ontario , increased brand awareness of BetRivers inCanada through anOlympics focused marketing campaign. -
Entered into market access partnership with Grupo Multimedios to bring online casino and sportsbook to
Mexico with anticipated launch in Q2 2022. -
Announced partnership to bring a retail sportsbook to the Hall of
Fame Village inCanton, Ohio . -
Became an official sportsbook partner of the
New Orleans Pelicans .
Technology Updates
- BetRivers sportsbook mobile app independently ranked #4 by Eilers & Krejcik out of 34 apps in the US market.
- Launched RSI’s integrated iOS sportsbook-casino app in December.
- Acquired the technology platform and onboarded the team from Run It Once Poker.
Earnings Conference Call and Webcast Details
RSI will host a conference call and audio webcast today at
The conference call may be accessed by dialing 1-844-200-6205 for domestic callers or 1-929-526-1599 for international callers. The conference call access code is 516635.
A live audio webcast of the earnings conference call may be accessed on RSI’s website at ir.rushstreetinteractive.com, along with a copy of this press release and an investor slide presentation. The audio webcast and investor slide presentation will be available on RSI’s investor relations website until at least
About
Non-GAAP Financial Measures
In addition to providing financial measurements based on accounting principles generally accepted in
RSI defines Adjusted EBITDA as net income (loss) before interest, income taxes, depreciation and amortization, share-based compensation, adjustments for certain one-time or non-recurring items and other adjustments. Adjusted EBITDA excludes certain expenses that are required in accordance with GAAP because certain expenses are either non-cash (for example, depreciation and amortization, and share-based compensation) or are not related to our underlying business performance (for example, interest income or expense).
RSI defines Adjusted Operating Costs and Expenses as RSI’s GAAP operating costs and expenses adjusted to exclude the impacts of share-based compensation, certain one-time or non-recurring items and other adjustments. Adjusted Operating Costs and Expenses excludes certain expenses that are required in accordance with GAAP because certain expenses are either non-cash (for example, share-based compensation) or are not related to our underlying business performance.
RSI defines Adjusted Net Loss Per Share as Adjusted Net Loss divided by Adjusted Weighted Average Common Shares Outstanding. Adjusted Net Loss is defined as net loss attributable to
RSI includes these non-GAAP financial measures because management uses them to evaluate RSI’s core operating performance and trends and to make strategic decisions regarding the allocation of capital and new investments. Management believes that these non-GAAP financial measures provide investors with useful information on RSI’s past financial and operating performance, enable comparison of financial results from period-to-period where certain items may vary independent of business performance, and allow for greater transparency with respect to metrics used by RSI’s management in operating our business. Management also believes these non-GAAP financial measures are useful in evaluating our operating performance compared to that of other companies in our industry, as these metrics generally eliminate the effects of certain items that may vary from company to company for reasons unrelated to overall operating performance.
Key Metrics
RSI provides certain key metrics, including MAUs and ARPMAU, in this press release. RSI defines MAUs as the number of unique users per month who have placed at least one real-money bet across one or more of our online casino or online sports betting offerings, and it defines ARPMAU as average revenue for the applicable period divided by the average MAUs for the same period.
The numbers RSI uses to calculate MAUs and ARPMAU are based on internal RSI data. While these numbers are based on what RSI believes to be reasonable judgments and estimates of its customer base for the applicable period of measurement, there are inherent challenges in measuring usage and engagement with respect to RSI’s online offerings across its customer base. Such challenges and limitations may also affect RSI’s understanding of certain details of its business. In addition, RSI’s key metrics and related estimates, including the definitions and calculations of the same, may differ from estimates published by third parties or from similarly-titled metrics of its competitors due to differences in operations, offerings, methodology and access to information. RSI regularly reviews, and may adjust its processes for calculating, its internal metrics to improve their accuracy.
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. RSI's actual results may differ from their expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "continue," and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, statements regarding guidance, RSI’s future results of operations or financial condition, RSI’s strategic plans and focus, anticipated launches of RSI’s current or new offerings in existing or future jurisdictions, player growth and engagement, product initiatives and the objectives of management for future operations. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside RSI's control and are difficult to predict. Factors that may cause such differences include, without limitation: changes in applicable laws or regulations; RSI’s ability to manage growth; RSI’s ability to execute our business plan and meet its projections; unanticipated product or service delays; general economic and market conditions impacting the demand for RSI’s products and services; economic and market conditions in the gaming, entertainment and leisure industry in the markets in which RSI operates; the potential adverse effects of the COVID-19 pandemic on capital markets, general economic conditions, unemployment and RSI’s liquidity, operations and personnel; and other risks and uncertainties indicated from time to time in RSI's filings with the
| ______________ |
1 This is a non-GAAP financial measure. Please see “Non-GAAP Financial Measures” for more information about this non-GAAP financial measure and “Reconciliations of GAAP to Non-GAAP Financial Measures” for a reconciliation of the most comparable measure calculated in accordance with GAAP to this non-GAAP financial measure. |
Consolidated Condensed Statements of Operations and Comprehensive Loss (Unaudited and in thousands, except per share data) |
|||||||||||||||
|
Three Months Ended |
|
Twelve months ended |
||||||||||||
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Revenue |
$ |
130,565 |
|
|
$ |
100,048 |
|
|
$ |
488,105 |
|
|
$ |
278,500 |
|
|
|
|
|
|
|
|
|
||||||||
Operating costs and expenses |
|
|
|
|
|
|
|
||||||||
Costs of revenue |
|
86,477 |
|
|
|
72,099 |
|
|
|
332,145 |
|
|
|
190,873 |
|
Advertising and promotions |
|
64,640 |
|
|
|
23,096 |
|
|
|
190,476 |
|
|
|
56,517 |
|
General administration and other |
|
14,868 |
|
|
|
47,632 |
|
|
|
55,518 |
|
|
|
162,447 |
|
Depreciation and amortization |
|
1,650 |
|
|
|
714 |
|
|
|
4,245 |
|
|
|
2,082 |
|
Total operating costs and expenses |
|
167,635 |
|
|
|
143,541 |
|
|
|
582,384 |
|
|
|
411,919 |
|
Loss from operations |
|
(37,070 |
) |
|
|
(43,493 |
) |
|
|
(94,279 |
) |
|
|
(133,419 |
) |
|
|
|
|
|
|
|
|
||||||||
Other income (expenses) |
|
|
|
|
|
|
|
||||||||
Interest expense, net |
|
(146 |
) |
|
|
(34 |
) |
|
|
(187 |
) |
|
|
(135 |
) |
Change in fair value of warrant liabilities |
|
— |
|
|
|
7,166 |
|
|
|
41,802 |
|
|
|
7,166 |
|
Change in fair value of earnout interests liability |
|
— |
|
|
|
(2,338 |
) |
|
|
(13,740 |
) |
|
|
(2,338 |
) |
Total other income (expenses) |
|
(146 |
) |
|
|
4,794 |
|
|
|
27,875 |
|
|
|
4,693 |
|
Loss before income taxes |
|
(37,216 |
) |
|
|
(38,699 |
) |
|
|
(66,404 |
) |
|
|
(128,726 |
) |
|
|
|
|
|
|
|
|
||||||||
Income tax expense |
|
907 |
|
|
|
2,919 |
|
|
|
4,688 |
|
|
|
2,919 |
|
Net loss |
$ |
(38,123 |
) |
|
$ |
(41,618 |
) |
|
$ |
(71,092 |
) |
|
$ |
(131,645 |
) |
|
|
|
|
|
|
|
|
||||||||
Net loss attributable to non-controlling interests |
|
(27,718 |
) |
|
|
(42,699 |
) |
|
|
(51,603 |
) |
|
|
(132,726 |
) |
Net income (loss) attributable to |
$ |
(10,405 |
) |
|
$ |
1,081 |
|
|
$ |
(19,489 |
) |
|
$ |
1,081 |
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per common share attributable to |
$ |
(0.17 |
) |
|
$ |
0.02 |
|
|
$ |
(0.35 |
) |
|
$ |
0.02 |
|
Weighted average common shares outstanding – basic |
|
59,581,075 |
|
|
43,579,704 |
|
|
|
56,265,541 |
|
|
43,579,704 |
|
||
|
|
|
|
|
|
|
|
||||||||
Net loss per common share attributable to |
$ |
(0.17 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.51 |
) |
|
$ |
(0.01 |
) |
Weighted average common shares outstanding – diluted |
|
59,581,075 |
|
|
|
52,242,606 |
|
|
|
57,426,885 |
|
|
|
52,242,606 |
|
|
Three Months Ended |
|
Twelve months ended |
||||||||||||
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Net loss |
$ |
(38,123 |
) |
|
$ |
(41,618 |
) |
|
$ |
(71,092 |
) |
|
$ |
(131,645 |
) |
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income (loss) |
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustment |
|
(1,051 |
) |
|
|
968 |
|
|
|
(2,111 |
) |
|
|
524 |
|
Comprehensive loss |
$ |
(39,174 |
) |
|
$ |
(40,650 |
) |
|
$ |
(73,203 |
) |
|
$ |
(131,121 |
) |
|
|
|
|
|
|
|
|
||||||||
Comprehensive loss attributable to non-controlling interests |
|
(28,483 |
) |
|
|
(41,731 |
) |
|
|
(53,168 |
) |
|
|
(132,202 |
) |
Comprehensive income (loss) attributable to |
$ |
(10,691 |
) |
|
$ |
1,081 |
|
|
$ |
(20,035 |
) |
|
$ |
1,081 |
|
Reconciliations of GAAP to Non-GAAP Financial Measures (Unaudited and in thousands) |
|||||||||||||||
Adjusted EBITDA: |
|||||||||||||||
|
Three Months Ended |
|
Twelve months ended |
||||||||||||
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Net loss |
$ |
(38,123 |
) |
|
$ |
(41,618 |
) |
|
$ |
(71,092 |
) |
|
$ |
(131,645 |
) |
|
|
|
|
|
|
|
|
||||||||
Interest expense, net |
|
146 |
|
|
|
34 |
|
|
|
187 |
|
|
|
135 |
|
Income tax expense |
|
907 |
|
|
|
2,919 |
|
|
|
4,688 |
|
|
|
2,919 |
|
One-time payment from Affiliated casino |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(9,000 |
) |
Depreciation and amortization |
|
1,650 |
|
|
|
714 |
|
|
|
4,245 |
|
|
|
2,082 |
|
Change in fair value of warrant liability |
|
— |
|
|
|
(7,166 |
) |
|
|
(41,802 |
) |
|
|
(7,166 |
) |
Change in fair value of earnout interests liability |
|
— |
|
|
|
2,338 |
|
|
|
13,740 |
|
|
|
2,338 |
|
Share-based compensation expense |
|
4,207 |
|
|
|
41,451 |
|
|
|
24,912 |
|
|
|
144,733 |
|
Adjusted EBITDA |
$ |
(31,213 |
) |
|
$ |
(1,328 |
) |
|
$ |
(65,122 |
) |
|
$ |
4,396 |
|
Adjusted Operating Costs and Expenses: |
|||||||||||||||
|
Three Months Ended |
|
Twelve months ended |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating costs and expenses: |
|
|
|
|
|
|
|
||||||||
Costs of revenue |
$ |
86,477 |
|
|
$ |
72,099 |
|
|
$ |
332,145 |
|
|
$ |
190,873 |
|
Advertising and promotions |
|
64,640 |
|
|
|
23,096 |
|
|
|
190,476 |
|
|
|
56,517 |
|
General administration and other |
|
14,868 |
|
|
|
47,632 |
|
|
|
55,518 |
|
|
|
162,447 |
|
Depreciation and amortization |
|
1,650 |
|
|
|
714 |
|
|
|
4,245 |
|
|
|
2,082 |
|
Total operating costs and expenses |
$ |
167,635 |
|
|
$ |
143,541 |
|
|
$ |
582,384 |
|
|
$ |
411,919 |
|
|
|
|
|
|
|
|
|
||||||||
Non-GAAP operating cost and expense adjustments: |
|
|
|
|
|
|
|
||||||||
Costs of revenue1 |
$ |
(297 |
) |
|
$ |
— |
|
|
$ |
(1,808 |
) |
|
$ |
9,000 |
|
Advertising and promotions2 |
|
(634 |
) |
|
|
— |
|
|
|
(3,605 |
) |
|
|
— |
|
General administration and other2 |
|
(3,276 |
) |
|
|
(41,451 |
) |
|
|
(19,499 |
) |
|
|
(144,733 |
) |
Depreciation and amortization |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total non-GAAP operating cost and expense adjustments |
$ |
(4,207 |
) |
|
$ |
(41,451 |
) |
|
$ |
(24,912 |
) |
|
$ |
(135,733 |
) |
|
|
|
|
|
|
|
|
||||||||
Adjusted operating costs and expenses: |
|
|
|
|
|
|
|
||||||||
Costs of revenue |
$ |
86,180 |
|
|
$ |
72,099 |
|
|
$ |
330,337 |
|
|
$ |
199,873 |
|
Advertising and promotions |
|
64,006 |
|
|
|
23,096 |
|
|
|
186,871 |
|
|
|
56,517 |
|
General administration and other |
|
11,592 |
|
|
|
6,181 |
|
|
|
36,019 |
|
|
|
17,714 |
|
Depreciation and amortization |
|
1,650 |
|
|
|
714 |
|
|
|
4,245 |
|
|
|
2,082 |
|
Total adjusted operating costs and expenses |
$ |
163,428 |
|
|
$ |
102,090 |
|
|
$ |
557,472 |
|
|
$ |
276,186 |
|
-
Non-GAAP Operating Costs and Expense Adjustments for the three and twelve months ended
December 31, 2021 include Share-based compensation, while Non-GAAP Operating Costs and Expense Adjustments for the twelve months endedDecember 31, 2020 include a one-time payment from Affiliated casino. - Share-based compensation.
Reconciliations of GAAP to Non-GAAP Financial Measures (Unaudited and in thousands, except share and per share data) |
|||||||
Adjusted Net Loss, Adjusted Weighted Average Common Shares Outstanding and Adjusted Net Loss Per Share: |
|||||||
|
Three Months Ended |
|
Twelve months ended |
||||
Adjusted Net Loss |
|
|
|
||||
Net loss attributable to |
$ |
(10,405 |
) |
|
$ |
(29,058 |
) |
Adjustments: |
|
|
|
||||
Net loss attributable to non-controlling interests |
|
(27,718 |
) |
|
|
(51,603 |
) |
Change in fair value of warrant liabilities attributable to non-controlling interests |
|
— |
|
|
|
(32,233 |
) |
Change in fair value of earnout interests liability |
|
— |
|
|
|
13,740 |
|
Share-based compensation expense |
|
4,207 |
|
|
|
24,912 |
|
Adjusted Net Loss |
$ |
(33,916 |
) |
|
$ |
(74,242 |
) |
|
|
|
|
||||
Adjusted Weighted Average Common Shares Outstanding |
|
|
|
||||
Weighted average common shares outstanding – diluted2 |
|
59,581,075 |
|
|
|
57,426,885 |
|
Adjustments: |
|
|
|
||||
Conversion of weighted average RSILP units to Class A Common Shares |
|
159,657,590 |
|
|
|
159,417,041 |
|
Adjusted Weighted Average Common Shares Outstanding |
|
219,238,665 |
|
|
|
216,843,926 |
|
|
|
|
|
||||
Net loss per common share attributable to |
$ |
(0.17 |
) |
|
$ |
(0.51 |
) |
Adjusted Net Loss per Share |
$ |
(0.15 |
) |
|
$ |
(0.34 |
) |
-
Net loss attributable to
Rush Street Interactive, Inc. – diluted for the twelve months endedDecember 31, 2021 , includes the Net loss attributable toRush Street Interactive, Inc. adjusted for the dilutive effect of previously outstanding warrants that were redeemed inMarch 2021 (i.e., the portion of the change in fair value of warrants attributed toRush Street Interactive Inc. ). There was no dilutive effect for the three months endedDecember 31, 2021 . -
Weighted average common shares outstanding – diluted for the twelve months ended
December 31, 2021 , includes the basic number of weighted average common shares outstanding, adjusted for the dilutive effect of previously outstanding warrants that were redeemed inMarch 2021 using the Treasury Stock Method. There was no dilutive effect for the three months endedDecember 31, 2021 .
View source version on businesswire.com: https://www.businesswire.com/news/home/20220302005941/en/
Media Contacts:
(312) 319-9233 / (212) 257-4170
rsi@gasthalter.com
or
(609) 788-8548
lisa@lisajohnsoncommunications.com
Investor Contact:
ir@rushstreetinteractive.com
Source:
FAQ
What were the Q4 2021 revenue figures for RSI?
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